Balancing not just the budget

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  • ZTD
    ZTD Posts: 24,327 Forumite
    RosaBernicia wrote: »
    that's exactly why things should either not be based on age, or stepped when you make the offer or a change... see 1950s women and pensions

    I would agree with that, but double-stepping is also bad.
    RosaBernicia wrote: »
    Danny Dorling suggests that the 20% is the banks' estimate of how much the market is overvalued, since they are essentially refusing to lend that amount and the govt are kindly stepping in for them... http://www.dannydorling.org/books/allthatissolid/

    Written Feb 2014? Fairly out of date now. Take a look at:
    http://www.economicshelp.org/wp-content/uploads/2015/12/regional-house-prices-ratio.png

    A lot of change since 2014, and it's still not the complete picture. (I choose price/wage ratios as it divides out the effect of wage inflation)
    RosaBernicia wrote: »
    (this does not make me any less nervous about housebuying, but does mean I will be looking very carefully at the Help to Buy t&c)

    Next graph...
    UKHousePricetoHouseBuyerEarningsRatioHeat.png

    The State wishes to keep the ratio in 5 and beyond, but the ratio tends to stay near the average - that's why it's the average. The only ways the ratio can come down, is a reduction in houseprices or a rise in wages.

    Which is more likely is left as an exercise for the reader...

    However, I would point out it is London distorting the ratios so widely. The rest of the country is less insane - though *not* more sane... :rotfl:
    "Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
    "We were born and raised in a summer haze." Adele 'Someone like you.'
    "Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky."     OMD 'Julia's Song'
  • ZTD
    ZTD Posts: 24,327 Forumite
    RosaBernicia wrote: »
    My bank have just graciously offered me 0% balance transfer for a whole six months at 2.9% fee. :rotfl:*sticks up two fingers at them

    *Two* fingers? That's rather generous...
    RosaBernicia wrote: »
    and suggests they read MSE cards page*

    I think it's good timing to be considering my accounts :D

    Yes indeedy.
    "Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
    "We were born and raised in a summer haze." Adele 'Someone like you.'
    "Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky."     OMD 'Julia's Song'
  • kerri_gt
    kerri_gt Posts: 11,202 Forumite
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    ZTD wrote: »
    I would agree with that, but double-stepping is also bad.



    Written Feb 2014? Fairly out of date now. Take a look at:
    http://www.economicshelp.org/wp-content/uploads/2015/12/regional-house-prices-ratio.png

    A lot of change since 2014, and it's still not the complete picture. (I choose price/wage ratios as it divides out the effect of wage inflation)



    Next graph...
    UKHousePricetoHouseBuyerEarningsRatioHeat.png

    The State wishes to keep the ratio in 5 and beyond, but the ratio tends to stay near the average - that's why it's the average. The only ways the ratio can come down, is a reduction in houseprices or a rise in wages.

    Which is more likely is left as an exercise for the reader...

    However, I would point out it is London distorting the ratios so widely. The rest of the country is less insane - though *not* more sane... :rotfl:

    Wow I wish that graph were the average house price round here, that's more like 'average deposit needed' :(:eek:
    Feb 2015 NSD Challenge 8/12
    JAN NSD 11/16


  • RosaBernicia
    RosaBernicia Posts: 4,875 Forumite
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    Sigh. I do think it will have to be sorted out sooner or later - I know there are now areas of the SE with thousands of jobs unfilled and unfillable, because nobody can afford to live even in commuting distance on eg carers' wages.

    I'm still considering sharing rented for a year and just stacking away deposit money to buy when things calm down. Here is as bad as London.


    Rosa xx


    Rosa xx
    Debt free May 2016... DFW#2 in progress
    Campervan paid off summer '21... MFW progress tbc
  • RosaBernicia
    RosaBernicia Posts: 4,875 Forumite
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    kerri_gt wrote: »
    Wow I wish that graph were the average house price round here, that's more like 'average deposit needed' :(:eek:

    Yes, same here. Am wishing I had a time travel messaging machine - letter to graduate self saying 'Buy a house NOW'... :rotfl:


    Rosa xx
    Debt free May 2016... DFW#2 in progress
    Campervan paid off summer '21... MFW progress tbc
  • kerri_gt
    kerri_gt Posts: 11,202 Forumite
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    RosaBernicia wrote: »
    Yes, same here. Am wishing I had a time travel messaging machine - letter to graduate self saying 'Buy a house NOW'... :rotfl:


    Rosa xx

    Tell me about it. There's a house in my road that I believe was about £90k when it was built, one next door to it (although I think the one next door is detached) was just sold at 'offers over' £600k :eek:
    Feb 2015 NSD Challenge 8/12
    JAN NSD 11/16


  • RosaBernicia
    RosaBernicia Posts: 4,875 Forumite
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    kerri_gt wrote: »
    Tell me about it. There's a house in my road that I believe was about £90k when it was built, one next door to it (although I think the one next door is detached) was just sold at 'offers over' £600k :eek:

    I didn't buy a house when I got my first job because I didn't think I'd stay in the city. That was when I earned about 1/3 of my current salary, and the area prices have gone up by x 3... doh!

    Still, I do think having a mortgage restricts your options and I have always liked knowing I can move and change my lifestyle if necessary.


    Rosa xx
    Debt free May 2016... DFW#2 in progress
    Campervan paid off summer '21... MFW progress tbc
  • RosaBernicia
    RosaBernicia Posts: 4,875 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    Right, one direct debit set up on old account and Payp4l one in process. Turns out it's not quite empty, between the current and savings accounts I have exactly £1 I didn't know about :rotfl:

    As soon as they are both showing up I will arrange the switch and closure - and get the next one sorted too :)



    Rosa xx
    Debt free May 2016... DFW#2 in progress
    Campervan paid off summer '21... MFW progress tbc
  • ZTD
    ZTD Posts: 24,327 Forumite
    kerri_gt wrote: »
    Wow I wish that graph were the average house price round here, that's more like 'average deposit needed' :(:eek:

    Just remember that's an average around the country. It depends where you live:

    2CB88F3B00000578-3247726-image-a-30_1443110797097.jpg
    RosaBernicia wrote: »
    Sigh. I do think it will have to be sorted out sooner or later

    It won't be sorted out. There are too many vested interests in keeping it going. It'll stop when it collapses, and a lot of public money will be thrown at it to try to stop it collapsing. And it'll be futile. Just like last time. And the time before. And the time before that.
    RosaBernicia wrote: »
    - I know there are now areas of the SE with thousands of jobs unfilled and unfillable, because nobody can afford to live even in commuting distance on eg carers' wages.

    The question to ask is - where are there so many jobs there and not somewhere else?
    "Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
    "We were born and raised in a summer haze." Adele 'Someone like you.'
    "Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky."     OMD 'Julia's Song'
  • ZTD
    ZTD Posts: 24,327 Forumite
    RosaBernicia wrote: »
    Right, one direct debit set up on old account and Payp4l one in process. Turns out it's not quite empty, between the current and savings accounts I have exactly £1 I didn't know about :rotfl:

    Almost as good as down the back of the sofa...
    "Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
    "We were born and raised in a summer haze." Adele 'Someone like you.'
    "Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky."     OMD 'Julia's Song'
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